EU urges UK to match China car tariffs to ease trade access

Key facts

• The EU is urging the UK to raise tariffs on Chinese-made cars.
• The UK's current trade policy has boosted Chinese car market share to over 16% of new vehicle sales.
• The EU fears the UK could become a conduit for Chinese products.
• The UK seeks inclusion in the 'made in Europe' policy for energy and chemicals.
• Massimiliano Messina warned the UK could become a corridor for Chinese EVs into the EU.

The European Union is pressuring the United Kingdom to align its trade policy on Chinese-made cars with the bloc's, a move that could facilitate British access to the EU market under the "made in Europe" initiative. The EU recently gained sufficient support from member states to impose tariffs ranging from 7.8% to 35.3% on Chinese electric vehicles due to allegations of unfair subsidization. However, the UK, having left the EU, has not implemented similar tariffs, which has contributed to a significant increase in the market share of Chinese cars in the UK's new vehicle sales, reaching over 16% this year. EU officials are concerned that the UK could become a gateway for Chinese products into the European market. Meanwhile, the UK government is seeking to be included in the "made in Europe" policy for certain sectors like energy and chemicals to maintain access to the EU market, despite ruling out rejoining the EU's single market or customs union. Auto industry executives, including Massimiliano Messina, chair for Nissan’s AMIEO region, have expressed concerns that the UK's divergent trade policies could make it a corridor for Chinese EVs into the EU, suggesting that the UK needs to adjust its tariff policies.